July 19, 2018, 5:59 am
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Stocks hit 3-mo. low

Share prices ended lower Thursday as investors looked at overseas lead to trade the market.

Philippine shares hit a more than three-month low, on broad-based losses

The Philippine Stock Exchange index (PSEi) was down 158.73 points to 8,190.01, a 1.9 percent drop.

The broader all shares index was 69.41 points to 4,966.44, a 1.38 percent drop.

Losers edged gainers 118 to 92 with 47 stocks unchanged. 

Trading turnover reached P7.59 billion. 

Luis Limlingan, managing director at Regina Capital Development Corp., said the market was influenced by the overnight drop in Wall Street “with trade war concerns being at the center once again of attention.” 

“Much of the protectionist concern stemmed not only from the actions taken so far, but the prospect of further action, directed specifically at China (and potentially other parts of emerging markets in  Asia),” Limingan  said. 

Limlingan said from the market’s record high of 9,058, the PSEi is already down 9.58 percent. 

“By definition a correction is a 10 percent drop, (which we are approaching) and bear market is 20 percent,” he said.

Most actively traded Ayala Land Inc. was down P1.15 to P40.40. Metropolitan Bank and Trust Co. was down P0.50 to P96. BDO Unibank Inc. was down P4.60 to 145.40. Bank of the Philippine Islands was down P0.50 to P114.70. Ayala Corp. was down P32 to P1,006. SM Investments Corp. was down P37 to P912.50. SM Prime Holdings Inc. was down P1.50 to P34. Jollibee Foods Corp. was down P4.40 to P284. Robinsons Retail Holdings Inc. was down P4.35 to P87.

Most Southeast Asian stock markets lost ground on Thursday, tracking Wall Street overnight, as trade war fears intensified on reports US President Donald Trump would seek fresh tariffs on imports from China.

On Wednesday, a White House spokeswoman said the Trump administration is pressing China to cut its trade surplus with the United States by $100 billion, without specifying how it should be narrowed. 

The surplus-cutting goal may be met by increased purchases of US products such as soybeans or aircraft, or if China makes major changes to its industrial policies, cuts subsidies to state-owned enterprises or further reduces steel and aluminum capacity.

The tariffs on up to $60 billion of Chinese imports will target the technology and telecommunications sectors, two people who had discussed the issue with the Trump administration said on Tuesday. 

The three major US indexes slipped by as much as 1 percent on Wednesday, while Asia-Pacific shares outside Japan dropped as much as 0.5 percent as investors moved to bonds. 

Malaysia fell as much as 0.6 percent, weighed down by consumer staples and financials. Nestle (Malaysia) Bhd fell as much as 11.4 percent.

The Singapore index lost 0.6 percent, hurt by losses in financials and industrials. Lenders DBS Group Holdings Ltd, Oversea-Chinese Banking Corp Ltd and United Overseas Bank Ltd fell between 0.6 percent and 1.5 percent.

The Indonesian benchmark slipped as much as 0.9 percent to its lowest since early January, on weakness in financials and telecom stocks.

Telekomunikasi Indonesia fell 1.7 percent, weighing the most on the index.

An index of the country’s 45 most liquid stocks lost 0.7 percent.

Thai shares rose on strong performance in energy stocks and financials. Oil and gas company PTT PCL gained up to 0.7 percent. – Reuters 
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